Order the answer to: Jamal has a utility function U = W1/2, where W

Assignment Help business-economics Order the answer to: Jamal has a utility function U = W1/2, where W

business-economics

Order the answer to: Jamal has a utility function U = W1/2, where W

Question Jamal has a utility function U = W1/2, where W is his wealth in millions of dollars (which determines how much he gets to buy and consume over his lifetime) and U is the utility he obtains. a. Graph Jamal’s utility function. Is he risk averse? Explain. b. In the final stage of a game show, the host offers Jamal a choice between (A) $4 million for sure, or (B) a gamble that pays $1 million with probability 0.6 and $9 million with probability 0.4. Should Jamal pick A or B? Explain you reasoning with appropriate calculations.
Subject business-economics
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